Establishing Materiality Levels That Reduce Audit Work
The concepts of materiality included in SAS No. 107 provide a framework for audit quality. They also provide opportunities for saving time by considering risk of material misstatement at both the financial statement and assertion levels. Here are some of the time savings opportunities: Tolerable misstatement by financial statement classification will affect sample sizes determined statistically or non-statistically. Using a higher level of tolerable misstatement when risk at the assert
